Today, Kevin and Fred have decided to cover a topic that they have never covered previously. Furthermore, they haven’t ever discussed it in one of their Crush It classes. The topic is post short sale approval problems. In essence, you previously have an agreement from the bank and troubles crop up. How do you deal with them? What is really happening out there?
With a transaction that closed yesterday, our escrow representative was looking to get the closing HUD approval from our negotiator at Citi. It was closing today. The negotiator denied the final HUD despite the fact that all of the conditions were met. The most horrible part was that the negotiator wasn’t willing to converse in plain english to clarify that the HUD had to look a particular way. It is vital to note that just because the transaction is approved, it does not mean it is closed.
Recognize that your approval note at most banks states that they have to approve of the final HUD. Because the approval letters do not specify what they are paying and what they are not paying, you may not know if they will grant it.
We had one more post approval dilemma of late, with an approval from the controller. We scheduled the closing. About a week into the closing, we got a call from another negotiator that introduced themselves as the the new negotiator for this file. She requested a number of papers so that she could get the file accepted. When we told her that we previously had the folder accepted, she let us know that that approval was no longer valid because they never got the file accepted from the backer.
This is the type of stuff that is occuring out there that you will not here in a normal short sale training class. The point is that there are post approval troubles and you are going to have to deal with them if you want to be victorious in this business.
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